The European Central Bank and the 19 national central banks of the Eurosystem will start making annual reports of the climate performance of their investment portfolios within the next two years, using the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) as the initial framework.
The policy will apply to the supervisory institutions’s Euro-denominated non-monetary policy portfolios, which include investment portfolios and staff pension funds.
The new ‘common stance’, which was announced yesterday, will lay the foundation for more comprehensive reporting of greenhouse gas emissions and other sustainable and responsible investment-related metrics of these portfolios in the future.
According to the ECB, the move comes after “extensive preparatory work” within the Eurosystem and is in line with recommendations made by green central banking group the Network for Greening the Financial System.
The ECB first indica…